Question
work must be shown Colavito Airlines' ground handling department has assigned all overhead costs into seven activity cost pools. The budgeted amounts and the associated
work must be shown
Colavito Airlines' ground handling department has assigned all overhead costs into seven activity cost pools. The budgeted amounts and the associated cost drivers for these cost pools are as follows:
ActivityBudgetedBudgeted Level
Cost PoolCosts Cost Driverfor Cost Driver
Loading and unloading cargo$250,000Pounds of cargo2,000,000 lbs.
Directing planes to and from gates110,000Directing distance5,500 miles
Loading and unloading baggage300,000Bags loaded & unloaded100,000 bags
Communicating with pilots80,000Communication time2,000 hours
Fueling planes450,000Fueling time10,000 hours
Deicing planes75,000Deicing time1,000 hours
Locating mishandled bags200,000Number of inquiries5,000 inquiries
Total$1,465,000
Flight #1025 has just been completed with the following cost driver information available:
Pounds of cargo 37,000
Directing distance (miles)2.3
Bags loaded & unloaded 250
Communication hours1.4
Fueling hours3.7
Deicing hours0.3
Number of inquiries4
- [3 pts.] Compute the total overhead cost assigned to Flight #1025, using an overall overhead rate based on number of bags loaded and unloaded:
$ ___________________
- [7 pts.] Compute the total overhead cost assigned to Flight #1025, using activity-based costing: $ _________________
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